Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
MTD None None

New Calls

Mettler Toledo - MTD - close: 63.66 chg: +1.42 stop: 59.99

Company Description:
METTLER TOLEDO is a leading global supplier of precision instruments and services. The Company is the world's largest manufacturer and marketer of weighing instruments for use in laboratory, industrial and food retailing applications. The Company also holds top-three market positions in several related analytical instruments and is a leading provider of automated chemistry systems used in drug and chemical compound discovery and development. In addition, the Company is the world's largest manufacturer and marketer of metal detection and other end-of-line inspection systems used in production and packaging and holds a leading position in certain process analytics applications. (source: company press release or website)

Why We Like It:
The recent market strength has been strong enough to fuel a bullish breakout in shares of MTD. The stock has been consolidating mostly sideways the past three months and the consolidation took the form of an inverse (bullish) head-and-shoulders pattern. MTD's breakout over resistance near $62.00 and the $62.50 level has produced a new MACD buy signal. The weekly chart's MACD is also nearing a new buy signal. The Point & Figure chart has produced a triple-top breakout buy signal with a $72 target. We are suggesting call positions with MTD above $62.00. Traders have a choice to open positions now or wait for a possible pull back toward the $62.00-62.50 level, which should now act as support. Our target is the $68.00-69.00 range. Please note that we normally try to avoid playing stocks with average volume this low so traders may want to consider this a higher-risk play. We do not want to hold over the late October earnings report.

Suggested Options:
We are suggesting the October calls. You, the individual trader, should decide which month and strike price best suits your trading style and risk.

BUY CALL OCT 60.00 MTD-JL open interest= 13 current ask $5.20
BUY CALL OCT 65.00 MTD-JM open interest= 40 current ask $1.55

Picked on September 13 at $ 63.66
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 169 thousand
 

New Puts

None today.
 

New Strangles

None today.
 

New Play Archives